FROM THE EDITOR
We believe this new prospectus exemption will provide greater access for Ontario’s companies and
investors to the incredible opportunities in the private markets. While we remain unconvinced of the
need for arbitrary investor limits, and had argued that they should be set aside, we are pleased that
many other amendments were adopted in the final rules in response to the advocacy of the PCMA.
Some of the important changes included: a) the removal of an ill-conceived restriction on dealers
trading in securities of related issuers, a common structure in our Canadian financial markets; b)
significantly higher investor limits of up to $100,000 based on the suitability advice of a dealer; c) the
preservation of the eligible investor concept and thresholds; and d) significant advancement towards
harmonizing the Offering Memorandum Exemption across Canada.
While more work will be ahead in simplifying complex and still fragmented rules that unnecessarily
burden dealers, issuers and investors, we should stop and acknowledge that this is a significant
milestone and represents the success of years of intense and persuasive PCMA advocacy.
Accomplishments like this are why we came together as the PCMA, and they demonstrate the
value of our efforts and the strength of collective PCMA voice. Inside this edition, look for a useful
summary on the proposed changes to the Offering Memorandum Exemption and discussion of
what they may mean for dealing representatives and issuers.
Key Roles of the PCMA
One of the roles of the Private Capital Markets magazine is to keep our PCMA members up-to-date on the issues and to keep our community engaged in the important dialogue and debate
about our future. The PCMA is also dedicated to sharing business and personal stories of the
people behind the private markets to ensure we celebrate the growth and success that is all
around us, but too often out of sight.
We do face challenges, many arising from changing regulation, rising client suitability
expectations, and the complexities of regulatory compliance, business conduct and economic
change. With the engagement and support of our members, the PCMA can be a key part of the
communication and change we need to continue to grow and expand our private markets. Your
PCMA is an ideal vehicle to bring together the huge talent and collective wisdom of our dealing
representatives, dealers and issuers across the country with the goal of transforming the private
markets into the best place to raise capital and invest. When we have a strong private capital
market, we have a strong foundation for our economy and the future of Canada.
Please send us your comments, suggest articles for upcoming editions, or to inquire about
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Please share this edition of Private Capital Markets magazine and the articles you are most
interested in with your netwroks and contacts across Canada. If your colleagues aren’t a part of
our discussion yet, invite them to join your PCMA!
Editor, Private Capital Markets magazine
Executive Director, Private Capital Markets Association of Canada